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HomeEconomicsUp to 590% growth bets: 4 Nifty50 cos may double YoY profit...

Up to 590% growth bets: 4 Nifty50 cos may double YoY profit in Q3 : Shivpurinews.in

NEW DELHI: At least four Nifty50 companies – Axis Bank, , and – may report up to 590 per cent surge in December quarter net profit on year-on-year basis. This would be against a 20-25 per cent jump in profits analysts are estimating for the Nifty50 universe.
In case of Axis Bank, Nirmal Bang Institutional Equities is expecting a 204 per cent YoY rise in net profit at Rs 3,398.70 crore. Centrum Broking pegs Axis Bank’s profit at Rs 3,201.20 crore, up 186.7 per cent. Kotak Institutional Equities profit estimate of Rs 3,333 crore suggests 198 per cent potential jump in Q3 net for the private lender.

“We expect Q3FY22 slippages to moderate from 3.5 per cent run-rate in Q2FY21. Lower set of restructuring at 0.64 per cent provides comfort. We expect credit cost run-rate to be similar to H1FY22 average (sequentially an uptick as Q2FY22 had a higher element of recoveries).

“Seasoning of the portfolio would call for increased coverage. Loan growth in-line with peers should see QoQ uptick of 4-6 per cent in Q3FY22. Sustained focus towards secured retail segments, better rated corporate and tech driven transformation initiatives should aid loan growth,” said ICICI Securities.
This brokerage is pegging Axis Bank’s profit at Rs 2,922.30 crore, up 162 per cent.

In case of Tata Steel, Phillip Capital sees the steelmaker’s profit growing 119.80 per cent to Rs 9,154 crore as it sees higher realisations across geographies. Edelweiss expects the Tata Group company logging a profit of Rs 9,068.60 crore, up 138.60 per cent YoY.

“Ebitda could be impacted by higher coking coal prices for domestic operations. Blended realisation expected to be up Rs 1,800 per tonne QoQ. In case of TSE, the impact of high coking coal prices will be partially mitigated by lower global iron ore prices,” Edelweiss said.
Motilal Oswal Securities Tata Steel’s profit at Rs 10,400 crore, up 169 per cent.

The same brokerage sees JSW Steel’s bottomline at Rs 5800 crore, up 115.80 per cent YoY. IDBI Capital, on the other hand, has pegged JSW’s profit at Rs 6,162 crore, up 130.90 per cent YoY.

“We forecast JSW’s sales to increase sharply by 60.9 per cent YoY led by strong improvement in both volumes and realisations. Ebitda is likely to increase by 131 per cent YoY due to lower base. We would watch for volume guidance for FY23 and update on capex and outlook on recently acquired Bhushan Power,” IDBI Capital said.

As far as ONGC is concerned, JM Financial sees standalone profit at Rs 8,676 crore, up 589.60 crore YoY. The brokerage is expecting Ebitda margin for the oil refiner to rise 762 basis points to 56.6 per cent from 49 per cent YoY.

“We assumed the net crude realisation at $76.4 per barrel, in line with rise in Brent price, a domestic gas realisations at $3 per mmbtu, also in line with domestic gas price formula, the overall crude sales volume fall of 4 per cent YoY; and the overall gas sales volume fall of 4 per cent YoY,” JM FInancial said.

YES Securities sees profit for ONGC rising 518 per cent to Rs 8,524.40 crore.

“ONGC is likely to report QoQ and YoY better profitability on improvement in crude realisation to $ 78 per barrel on an average. Improvement in realisation is likely to be offset by 4-5 per cent YoY decline in crude oil & natural gas production. In addition, Q2 PAT carried the impact of deferred tax adjustment, therefore Q3 profit could appear lower sequentially to that extent,” YES Securities said.

Here is a chart showing Motilal Oswal’s Q3 expectations for all Nifty50 stocks:



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